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Automotive

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The race for automotive digital transformation

Carmakers, suppliers, and dealerships are under intense pressure to transform their businesses and prepare for the future of mobility. 

Image representing top of mind topics for automotive, including vehicle electrification, connected cars, mobility services, operational resilience, and digital retailing
EV manufacturing and adoption

Driven by climate change and new technology, global sales of electric vehicles (EVs) spiked by 43% in 2020, even as overall car sales declined. To keep pace, carmakers and suppliers are manufacturing more plug-in, hybrid, and fuel cell electric vehicles, as well as EV charging stations, batteries, and more circular vehicle parts.

Connected cars and advanced driver assistance systems

OEMs are racing to develop technology for connected cars and ADAS systems. Carmakers can integrate smart technology, such as LIDAR, ultrasound, and IoT sensors, into their vehicles to attract modern buyers – and through a cloud-based vehicle to everything (v2x) infrastructure to send and receive car data that can be used to create services.

Mobility as a service (MaaS) and shared mobility

E-hailing companies, such as Uber, account for 90% of the US$130 billion mobility-as-a-service industry, but auto OEMs are looking at where they might fit in, especially in the area of employer-backed programs. Car sharing provides opportunities for companies, such as Toyota’s Kinto, to meet consumer demand for greater value, convenience, and sustainability. 

Resilient automotive supply chains

On-board technologies and EV components add additional requirements to already-complex automotive supply chains. Car battery and auto chip shortages threaten to remove millions of cars from production lines. To create more resilient supply chains – and to minimize global disruptions – automotive companies need the real-time visibility of advanced analytics.

Automotive digital retailing

Digital retailing options, such as contactless car buying and online dealerships, rose out of necessity during the pandemic, but they are fast becoming preferred purchasing routes. Dealers can use e-commerce technology and CRM data to support omnichannel vehicle sales and other services, such as accepting trade-ins and arranging test drives and deliveries.

The drive to sustainability

Consumers and regulators are sending a clear message to automakers: prioritize lower carbon footprints, resource efficiency, and circularity in your products and services. Automakers need the ability to trace materials and components across the value chain, and to refine internal processes for sustainability across the product lifecycle.

Featured automotive solutions

SAP E-Mobility

Build, monitor, and run EV charging networks at scale with a cloud solution that offers end-to-end functionality, from diverse charging scenarios to billing and communication. 

SAP Returnable Packaging Management

Track returnable packaging materials, such as crates, boxes, and pallets, to and from partners in real time to reduce waste and run a more sustainable automotive supply chain.

SAP Industry Network for Automotive

Enable next-generation automotive processes through an open and intelligent industry network.

The future of electric cars

Explore new and emerging EV technology.

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See how customers are succeeding with SAP

Explore our automotive industry solutions

Research, Development, and Engineering Manufacturing and Outbound Logistics Responsive Supply Networks Sales and Marketing Aftermarket Service Smart Mobility and Transformation

Design innovative vehicle products and services – and get them to market first – with SAP solutions. Collaborate with partners across the automotive ecosystem, accelerate product development, and help ensure compliance with auto industry standards.  

  • Innovations based on actual vehicle data, incidents, customer feedback, and market analysis
  • What-if simulation for better decision-making – in auto engineering and downstream
  • Integrated, collaborative, and agile product development
  • Global product safety management and compliance 
  • Integrated everything – from R&D and manufacturing to aftermarket services and mobility

79% of automotive organizations consider it important to collect and analyze vehicle data in order to predict outcomes for design, service, safety, and operations – but only 20% are able to do so​.

Source: SAP Performance Benchmarking

Thanks to SAP solutions, this first-of-its-kind use of machine learning to eliminate superfluous quality tests has wide-ranging implications for manufacturing efficiency and a shorter product manufacturing lifecycle.

Bhuwan Lodha, Vice President (Digital), Group Strategy Office, Mahindra & Mahindra

Run agile, highly autonomous automotive manufacturing, production, and assembly processes using Industry 4.0 and smart factory technologies from SAP. Combine business data with industrial IoT data to maximize manufacturing efficiency, improve sustainability, and cut costs.

  • Smart auto manufacturing systems in the cloud
  • Modular production and Industry 4.0 scenarios
  • Full visibility into shop-floor and top-floor operations
  • Environment, health, and safety management 
  • Integration with the extended supply chain and outbound logistics network 

 

15% reduction in manufacturing costs when the status and usage of operational machinery and tools are tracked in real time. 

Source: SAP Performance Benchmarking

 

At each stage of our Industry 4.0 journey, SAP solutions have enabled us to deliver business value that is clearly recognized across the organization.

Eric Godard, Group Deputy CIO, Faurecia S.A.

Create a fast, responsive, and resilient automotive supply chain. Our solutions support collaborative supply chain planning; digitalized operations; and smart warehousing, inventory, and logistics, enabling you to proactively sense disruptions, reduce your carbon footprint, deliver ahead of demand, and more. 

  • Real-time demand management and order promising
  • Response, supply, inventory, and operations planning  
  • Smart warehousing, transportation, and logistics 
  • Supply network collaboration 
  • Green and sustainable supply chain management 

 

76% of automotive organizations consider it important to enable a digitally connected supply chain to avoid supply disruptions – but only 17% are able to do so. 

Source: SAP Performance Benchmarking

 

Based on the holistic planning approach, we built the foundation for improved availabilities and reduced inventories within our multi-echelon supply chain.

Rainer Scheuring, Vice President Corporate Finance, IT, M&A AC Market and Materials Management, ZF Friedrichshafen AG

Deliver personalized, differentiated automotive experiences that create customers for life. Connect data from all sources – sales, service, marketing, and connected cars – to get deeper insights and proactively meet customer needs on every channel, and leverage solutions for real-time contextual marketing, omnichannel sales, billing, and more. 

  • 360-degree customer profiles and personalized engagements
  • Digital automotive retailing and omnichannel sales
  • Smooth billing and buying experiences
  • Robust sales performance management
  • Optimized vehicle distribution chains

79% of automotive organizations consider it important to capture customers' preferences and then deliver the products and services customers desire – but only 21% are able to do so.

Source: SAP Performance Benchmarking

 

Smart Europe’s vision is to "create an inspiring digital-first experience that enables easy online commerce and makes smart a brand customers love to engage with.” 

Björn Schick, Director Customer Experience, smart Europe GmbH

Grow revenue and drive brand loyalty by offering automotive aftermarket services that exceed customer expectations. SAP solutions support omnichannel customer service, parts management, warranty claims processing and complaint handling.

  • Omnichannel customer service management
  • Aftermarket auto parts management 
  • Warranty claims management 
  • Complaint handling

76% of automotive organizations consider it important to predict an asset failure, determine the cause, and recommend the best maintenance plan – but only 18% are able to do so.

Source: SAP Performance Benchmarking

 

Enabled by SAP technology, we are transforming the battery storage industry, improving customer experiences, and gaining significant competitive advantage.
Gautam Chatterjee, Chief Executive Officer, Exide Industries Ltd.

Create value and monetize new business models for autonomous, connected, electric, and shared vehicles with SAP. Our solutions can help you personalize in-car services, support subscription-based contracts, manage e-fleets, build and run EV charging networks, and more. Embrace change in the industry and shift toward mobility as a service (MaaS). 

  • Connected vehicle data hub
  • Urban and remote EV charge-point operations 
  • End-to-end fleet management
  • IoT-based logistics and transportation management 
  • Subscription billing and invoicing


60% of automotive organizations consider it important to predict driver needs and deliver appropriate networked mobility services, such as fuel, parking, navigation, and commerce, directly to a vehicle – but only 11% are able to do so.

Source: SAP Performance Benchmarking

 

For smooth operations, SAP E-Mobility has exactly the right range of functions without losing sight of the user experience. The detailed API documentation gives us and our customers the possibility to create tailor-made solutions.

Tobias Wagner, CEO, ChargeX GmbH

Get started with SAP's cloud solutions for automotive

SAP can help you start or enhance your digital transformation – no matter where you are in your journey. If you have yet to move to cloud ERP, you can get started with RISE with SAP for Automotive. If you already have cloud ERP – from SAP or any vendor – you can enhance your ERP capabilities with our automotive industry cloud solutions. 

RISE with SAP for Automotive

RISE with SAP provides customers with complete business transformation as a service (BTaaS) in a single package. At its core is the SAP S/4HANA Cloud suite, business process intelligence, technology credits, and more. RISE with SAP for Automotive also includes solutions for: 

  • Product lifecycle costing
  • Cloud-based digital manufacturing
  • Digital vehicle hub 
  • Returnable packaging management
  • Automated self-billing 
  • Collaborative supplier problem-solving

Industry cloud solutions

Built by SAP and our partners on an open platform, SAP’s industry cloud solutions address specific industry needs for the auto sector. Designed to work with your existing SAP and third-party systems, these specialized cloud applications can help you drive cost-effective transformation and sustainable growth. 

  • Cloud-based automotive solutions 
  • Built by SAP and our partners
  • Work with existing systems
  • Extension of your current investments

Featured cloud solutions for automotive

SAP Supplier Problem-Solving

Find and fix the root cause of quality issues quickly using 8D methodology on a collaborative platform for buyers, such as OEMs, part manufacturers, and tier 1 automotive suppliers, and their suppliers. 

SAP Digital Vehicle Suite

Achieve a holistic approach to vehicle, sales, and data management and focus on the future of mobility with solutions that provide a vehicle-centric view of sales and car-as-a-service processes.

Explore your automotive resource center

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